BILL NUMBER: SB 27	CHAPTERED  07/13/99

	CHAPTER   95
	FILED WITH SECRETARY OF STATE   JULY 13, 1999
	APPROVED BY GOVERNOR   JULY 13, 1999
	PASSED THE ASSEMBLY   JUNE 30, 1999
	PASSED THE SENATE   APRIL 26, 1999
	AMENDED IN SENATE   APRIL 7, 1999
	AMENDED IN SENATE   MARCH 11, 1999

INTRODUCED BY   Senator Burton

                        DECEMBER 7, 1998

   An act to amend Section 16302.1 of, to add Sections 13940, 13941,
13942, 13943, 13943.1, and 13943.2 to, and to repeal Sections
16301.6, 16301.7, and 16301.8 of, the Government Code, relating to
state finance, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 27, Burton.  State finances.
   (1) Existing law authorizes the Controller to discharge any state
agency or employee from accountability for the collection of taxes,
licenses, fees, or money if the debt is uncollectible or the amount
of the debt does not justify the cost of its collection.  Existing
law also authorizes a state agency not to collect these moneys if the
amount involved is $250 or less and the amount owed is uncollectible
or does not justify the cost of collection.  The Controller is
authorized to adopt rules and regulations to permit state agencies to
retain overpayments made to those agencies where a demand for refund
is not made within 6 months after the refund becomes due.
   This bill would grant this authority to the State Board of Control
instead of the Controller.
   (2) Under existing law, as set forth in the annual Budget Act,
funds are appropriated for the support of various state government
entities.
   This bill would require, for each of the fiscal years 1999-2000 to
2008-09, inclusive, unless the loan is paid off earlier, that the
Controller transfer to the General Fund, from a specified fund, an
amount equal to 10% of an amount that was loaned in 1998 to fund
certain contributions to the Public Employees Retirement System.
   (3) The bill would declare that it is to take effect immediately
as an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 13940 is added to the Government Code, to read:

   13940.  Any state agency or employee required to collect any state
taxes, licenses, fees, or money owing to the state for any reason
that is due and payable may be discharged by the board from
accountability for the collection of the taxes, licenses, fees, or
money if the debt is uncollectible or the amount of the debt does not
justify the cost of its collection.
  SEC. 2.  Section 13941 is added to the Government Code, to read:
   13941.  The application for a discharge under this chapter shall
be filed with the Controller and include the following:
   (a) A statement of the nature and amount of the tax, license, fee,
or other money due.
   (b) The names of the persons liable.
   (c) The estimated cost of collection.
   (d) All other facts warranting the discharge, unless the
Controller determines that the circumstances do not warrant the
furnishing of detailed information.
  SEC. 3.  Section 13942 is added to the Government Code, to read:
   13942.  The Controller shall audit the applications and recommend
to the board an order discharging the applicant from further
accountability for collection and authorizing the applicant to close
its book on that item, if the Controller determines the following:
   (a) The matters contained in the application are correct.
   (b) No credit exists against which the debt can be offset.
   (c) Collection is improbable for any reason.
   (d) The cost of recovery does not justify the collection.
   (e) For items that exceed the monetary jurisdiction of the small
claims court, the Attorney General has advised, in writing, that
collection is not justified by the cost or is improbable for any
reason.
  SEC. 4.  Section 13943 is added to the Government Code, to read:
   13943.  The board may delegate to the Controller, under terms and
conditions that are acceptable to the board, the authority to
discharge from accountability a state agency for accounts that do not
exceed the amount specified in subdivision (e) of Section 13942 and
thereby authorize the closing of the agency's books in regard to that
item.
  SEC. 5.  Section 13943.1 is added to the Government Code, to read:

   13943.1.  A discharge granted pursuant to this chapter to a state
agency or employee does not release any person from the payment of
any tax, license, fee, or other money that is due and owing to the
state.
  SEC. 6.  Section 13943.2 is added to the Government Code, to read:

   13943.2.  Upon authorization of the board, a state agency is not
required to collect taxes, licenses, fees, or money owing to the
state for any reason if the amount to be collected is two hundred
fifty dollars ($250) or less.  A state agency that seeks this
authorization shall file an application with the board accompanied by
a statement of circumstances.  Nothing contained in this section
shall be construed as releasing any person from the payment of any
money due the state.
  SEC. 7.  Section 16301.6 of the Government Code is repealed.
  SEC. 8.  Section 16301.7 of the Government Code is repealed.
  SEC. 9.  Section 16301.8 of the Government Code is repealed.
  SEC. 10.  Section 16302.1 of the Government Code is amended to
read:
   16302.1.  Whenever any person pays to any state agency pursuant to
law an amount covering taxes, penalties, interest, license or other
fees, or any other payment, and it is subsequently determined by the
state agency responsible for the collection thereof that this amount
includes an overpayment of ten dollars ($10) or less of the amount
due the state pursuant to the assessment, levy, or charge to which
the payment is applicable, the amount of the overpayment may be
disposed of in either of the following ways:
   (a) The state agency responsible for the collection to which the
overpayment relates may apply the amount of the overpayment as a
payment by the person on any other taxes, penalties, interest,
license or other fees, or any other amount due the state from that
person if the state agency is responsible by law for the collection
to which the overpayment is to be applied as a payment.
   (b) Upon written request of the state agency responsible for the
collection to which the overpayment relates, the amount of the
overpayment shall, on order of the Controller, be deposited as
revenue in the fund in the State Treasury into which the collection,
exclusive of overpayments, is required by law to be deposited.
   The State Board of Control may adopt rules and regulations to
permit state agencies to retain these overpayments where a demand for
refund permitted by law is not made within six months after the
refund becomes due, and the retained overpayments shall belong to the
state.
   Except as provided in the foregoing paragraph, this section shall
not affect the right of any person making overpayment of any amount
to the state to make a claim for refund of the overpayment, nor the
authority of any state agency or official to make payment of any
amount so claimed, if otherwise authorized by law.
  SEC. 11.  For each of the fiscal years 1999-2000 to 2008-09,
inclusive, the Controller shall transfer to the General Fund, from
Fund No.  0348 listed in Schedule (d) of Item 0110-001-0001 of
Section 2.00 of the annual Budget Act, an amount equal to 10 percent
of the total amount that, pursuant to a Department of Finance loan
repayment letter of March 19, 1999, was loaned in augmentation of
that item for the purpose of funding contributions pursuant to
Section 20822 or former Section 20751 of the Government Code.
Notwithstanding any other provision of law, the transfers made
pursuant to this section are hereby deemed to fully satisfy all
obligations to make repayment of that loan.  The loan may be fully
repaid and satisfied by an accelerated payment schedule, as agreed to
by the parties, at any time prior to the 2008-09 fiscal year, after
which the Controller shall not make any further transfers pursuant to
this section.
  SEC. 12.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order to ensure the efficient operation of state financial
affairs and to enable the Public Employees' Retirement System to
operate on an actuarially sound basis, it is necessary that this act
take effect immediately.
